Perhaps it helps to look at it like this. Say you have a joint liability or full liability accident causing £1200 of damage.
Now in my world, £1200 is not insignificant and I certainly wouldn't describe the sum as frivolous. However if I have a £1000 excess, I am stuck between a rock and a hard place: is it worth me claiming for £200 with the potential added implications for my premium? Probably not.
Therefore I'm on the hook for 1200 quid, despite being insured. So the question is, do you want to hedge for £44/y. Only you can answer of course, but that's the question with insurance of any kind.